Business

Retailers Riachuelo and Carrefour see huge spike in online sales

Brazil is a new "lab" in ecommerce expansion, but despite online growth, retail sales in general are headed for a record shrinkage

Since shutdown measures closed physical stores, Brazilian retailer Riachuelo reinforced its actions on digital channels and saw its growth. Photo: Shutterstock

Amid declining revenues because of the coronavirus pandemic and physical shops closures, retailers in Brazil are experiencing an explosion in digital sales. The clothing chain Riachuelo reinforced its actions and improved customer experience on its ecommerce channels to face a 124% spike in online sales over the week of April 4-12, according to a Propmark report.

Other e-commerce that had a quick growth was Carrefour‘s subsidiary in Brazil. The French supermarket chain has seen its Brazilian online sales more than triple over March. According to Luiz Henrique Escobar, head of ecommerce at Carrefour Brasil, “Brazil is a new lab in ecommerce ways”, as reported by Mercado&Consumo.

Riachuelo also reported 56% growth on its website traffic, compared to the same period last year. In 2019, the retailer invested BRL 168 million on its digital channels. But what probably drove its growth during the isolation period was marketing investment, as the firm sponsored live streaming performances by popular artists such Marília Mendonça‘s – which reached 3.2 million concurrent viewers – and Gusttavo Lima‘s YouTube. After the events, Riachuelo’s app had more than 50,000 downloads.

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Despite online earnings, retail sales are down and headed for a record drop. The forecast is that the retraction has exceeded 10% last month, according to Valor Econômico.